Targeted Price of BNI Shares Increased

VIVAnews - Research team of PT CIMB-GK Securities Indonesia downgrades PT Bank Negara Indonesia Tbk (BBNI) from outperform to neutral with targeted price of Rp 1,300 from the previous Rp 1,080.

The target uses dividend discount model (DDM) as its method at 16.1 percent.

"We have upgraded net profit per share of 2009-2011 by 59-77 percent due to reduced cost to income ratio assumption from 55-58 percent to 48-52 percent," said Director of CIMB-GK Securities Indonesia, William Henley, on Friday, May 1, in Jakarta.

According to the research, BNI recorded 40 percent of CIR in the first quarter of 2009.

BNI's gross non performing loan (NPL) increased by 5.6 percent from five percent in December 2008. Fixed provision remains at 106 percent, equal to December 2008 with 102 percent.

The net interest margin (NIM) is still at 6.1 percent with credit growth of three percent. However, the low cost deposit ratio slightly decreased to 54 percent due to an attempt for improving the liquidity.

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Translated by: Bonardo Maulana Wahono